New Delhi, Oct 25: Hero Honda Motors Ltd today announced a 9.2 per cent decline in its net profit at Rs 215.97 crore for the second quarter ended September 30, 2006, as compared to Rs 237.92 crore for the corresponding period last year.
The company's total turnover,however, increased 3.6 per cent to Rs 2,289.44 crore for the same quarter previous year.
''The impact on operating margins has been due to increased inflationary costs in raw materials - steel, aluminum and rubber etc,'' Hero Honda Motors Managing Director Pawan Munjal said.
He added that the company has significantly countered this increase in raw material cost through improved efficiencies in production and cost management.
''Hero Honda continues on its planned growth path. The launch of the four new models will positively impact our topline growth. We have increased investments in brand building which will help the company achieve long term market growth and further consolidate its leadership position,'' he said.
The company has recently inaugurated its third plant in Haridwar.